Global Microgrid Market To Grow

Research and consulting firm GlobalData's latest report shows that the global microgrid market will be worth US$18.9 billion in 2020. This will be a significant increase from the US$5.3 billion reaped in 2012.

European and Asian microgrid markets are expected to see the same growth that has occurred in the U.S., according to the latest report "Microgrid in Smart Grid – Market Size, Key Issues, Regulations and Outlook to 2020". The CAGR or compound annual growth rate is set at 17.2%, which will propel the industry to reach the value of US$18.9 billion in 2020.

Europe is currently at an introductory stage, but rapid expansion is expected soon thanks to the need to update the aging electricity infrastructure and the uptake of renewable energy generation. The European industry revenue is set to grow exponentially reaching US$5.3 billion by 2020. The value in 2012 was US$710 million.

The necessity for electrification of remote areas in countries like China, India and Malaysia will drive the microgrid sector in the Asia-Pacific region. By the end of the decade, the industry revenue is forecasted to be US$5.7 billion, from US$600 million in 2012. China is expected to maintain its market share of almost 40% over the eight-year period.

The U.S. will attain a revenue of US$5.7 billion by 2020, from US$3.6 billion in 2012. Last year, the U.S. held 68% of the global microgrids market.